Press release
Government Smart Card Market Analysis, Key Trends, and Top Player Overview
The use of smart cards in government services is gaining significant traction, driven by rising demands for secure and efficient identity management. As governments worldwide seek to enhance cybersecurity and improve citizen convenience, this sector is set to experience considerable expansion. Let's explore the projected market size, leading companies, emerging trends, and key segments shaping the future of smart cards in government applications.Projected Growth and Market Size of the Smart Card in Government Market
The smart card in government market is forecasted to grow substantially, reaching a value of $9.93 billion by 2030. This surge represents a compound annual growth rate (CAGR) of 9.7% over the coming years. Factors contributing to this expansion include increased investments in cybersecurity infrastructure, higher expectations for user-friendly government services, the widespread rollout of smart city projects, growth in contactless transaction systems, and the rising acceptance of multi-application smartcards. Key trends anticipated during this period encompass advancements in smartcard security technology, innovations in biometric-enabled cards, progress in cloud-based credential management solutions, ongoing blockchain identity research, and the development of environmentally sustainable card materials.
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Leading Corporations Driving the Smart Card in Government Industry
Several prominent companies dominate the smart card in government market, including Thales S.A., Infineon Technologies AG, STMicroelectronics N.V., and NXP Semiconductors N.V. Other major players include Avery Dennison Corporation, Zebra Technologies Corporation, Giesecke+Devrient GmbH, HID Global Corporation, Entrust Inc., SICPA S.A., Mühlbauer Holding AG, Bundesdruckerei GmbH, CPI Card Group Inc., Polska Wytwórnia Papierów Wartosciowych S.A., IN Groupe S.A., Evolis S.A., Veridos GmbH, Watchdata Technologies Co. Ltd., KL Hi-Tech Secure Print Limited, PAV CARD GmbH, Madras Security Printers Pvt. Ltd., Matica Technologies AG, and ID Smart Cards Creations Pvt. Ltd.
Significant Acquisition Enhancing Capabilities in Identity Solutions
In July 2025, IN Groupe, a France-based firm specializing in secure identity and trust services, completed the acquisition of Idemia Smart Identity, a company known for its biometric and digital ID platforms. Though financial details were not disclosed, this move is aimed at merging IN Groupe's strength in secure document production with Idemia's expertise in biometric technology, positioning the combined entity as a leader in integrated physical and digital identity solutions and trusted services.
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Innovative Trends Advancing the Smart Card in Government Sector
Key market players are increasingly focusing on supervised multi-acquisition remote enrollment technology to simplify identity verification processes. This technology enables a remote agent to securely manage multiple enrollments at once, ensuring compliance with digital identity standards and boosting security. For example, in October 2025, Idemia Public Security North America introduced its SMART-E kiosks and new driver's licenses and ID cards in several U.S. states. The SMART-E system features a fingerprint rejection rate below two percent and allows a single agent to oversee multiple registrations simultaneously. The new identification cards are crafted with tamper-resistant materials designed to last at least ten years, and these innovations are being implemented in Pennsylvania, Colorado, California, and Texas to modernize identity verification and credential issuance.
Market Segmentation in the Smart Card in Government Industry
This report segments the smart card in government market into various categories:
1) Component: Hardware, Software, and Services.
2) Card Type: Contact-Based Smart Cards, Contactless Smart Cards, Dual-Interface Smart Cards, and Hybrid Smart Cards.
3) Technology: Microprocessor Smart Cards, Memory Smart Cards, Biometric-Enabled Smart Cards, Optical and Other Advanced Cards.
4) Application: National Identification Cards, E-Passports, Driver's Licenses, Voter Identification Cards, Healthcare and Social Security Cards, Subsidy or Welfare Distribution Cards, Border Control and Immigration, and Other Applications.
5) End-User: Federal Government, State and Local Government, Public Safety, Transportation, and Other End-Users.
Further Breakdown of Hardware, Software, and Services Subsegments
Within hardware, the market covers smart card chips, smart card readers, embedded integrated circuits, biometric sensor modules, antenna modules, and card operating systems. The software segment includes card management, authentication, identity management, security encryption, operating system middleware, and application programming software. Services encompass consulting, integration, deployment, maintenance, support, and managed security offerings.
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